Free Republic

SACRAMENTO — The Schwarzenegger administration faced a dilemma today over a bill — stemming from a clash between two Bay Area card rooms — that would let local governments allow much higher-stakes in games like Texas Hold'em at 90 card clubs statewide. If Gov. Arnold Schwarzenegger, who is running for re-election, signs the measure. he pleases small business and cities that get a cut of their revenue, but goes against the wishes of 9,000 California churches that say he would be deregulating card rooms across California. The California Coalition Against Gambling Expansion that represents the churches is pleading with Schwarzenegger...

Sacramento -- The FBI has expanded its investigation of state Senate leader Don Perata in recent weeks, interviewing current and former members of his staff as well as lawyers and lobbyists for Bay Area card clubs that hired Perata's business partner at the senator's suggestion, five people with knowledge of the inquiry said. Federal agents are investigating Perata's financial relationship with the partner, Timothy G. Staples, and whether the Oakland lawmaker received any of the card-club money that went to Staples, according to people familiar with the probe who agreed to speak on the condition they not be identified. The...

<p>SACRAMENTO - A group proposing a statewide initiative to require Indian gaming tribes to contribute more to the state or else give up their monopoly on slots and other gaming devices has been cleared to collect signatures.</p> <p>The proposed gaming initiative -- one of several gambling measures voters may face in November -- would allow 16 existing card clubs and race tracks to operate up to 30,000 lucrative slot machines if all casino-owning tribes do not renegotiate their compacts with the state and agree to contribute a quarter of their slot revenues to the state. For the measure to appear on the fall ballot, the group must collect 598,105 valid signatures by June 24.</p>

[snip] Under her initiative, the governor's office and tribes would negotiate the percentage, but it could not be less than 8.84% of the casinos' gross income. In exchange, each tribe could add 1,000 slot machines, the most lucrative game in any casino. Currently, 15 tribes have casinos with 2,000 slot machines each, the maximum allowed. Schmit's measure comes a week after an initiative proposed by the Agua Caliente Band of Cahuilla Indians, owners of a casino in downtown Palm Springs and another off Interstate 10. The Agua Caliente's measure would require that tribes pay 8.84% of their net income to...

<p>A top political adviser to Arnold Schwarzenegger serves on the board of directors of a company that owns two Nevada casinos and has interests in two Southern California card clubs that compete with casinos run by California Indian tribes.</p> <p>Schwarzenegger has made attacking tribes and their political influence a major tenet of his campaign, prompting the actor's top Republican opponent in the recall election and a tribal gaming group to raise conflict-of-interest questions about Schwarzenegger Friday. At issue is Bonnie Reiss, a longtime Schwarzenegger ally who has taken an increasingly public role in his bid to be governor.</p>